The growing conflict with Iran is introducing a new layer of risk to the U.S. economy, and that has

direct implications for real estate. I'm Kathy Fedke, and this is real estate news for investors.

This is Real Estate News with Kathy Fedke. Over the past year, the U.S. economy has shown surprising resilience.

Growth is held up, employment has remained steady, and despite higher rates, housing demand

has continued in many markets.

But geopolitical instability is now entering the picture.

According to a new Reuters report, escalating tensions in the Middle

East, including U.S. military involvement, are raising concerns about energy supply disruptions

and inflation pressures. While the U.S. produces more of its own energy than it did in previous

decades, global oil markets remain interconnected, and when conflict-threatened

supply routes, prices can move quickly. One of the biggest concerns is the Strait of Hermuz,

a narrow shipping passage through which roughly a fifth of the world's oil supply travels.

Any disruption there can send oil prices higher almost immediately. We've already seen crude

prices spike towards the $80 per barrel range. If those increases stick, higher fuel costs could

filter through the broader economy, from transportation to manufacturing to consumer goods.

And that's where this becomes a real estate story.

Higher energy costs can push inflation back up, and inflation complicates the job of the Federal Reserve.

For months, investors have been watching for potential rate cuts, but if inflation pressures re-accelerate

due to rising oil prices, the Fed may have to delay easing, or at least

proceed more cautiously. Even former Treasury Secretary Janet Yellen has warned that

sustained conflict could increase inflation while slowing growth. That's a combination

economists refer to as stagflation risk.

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